MSFT Dividend Type Payments

MICROSOFT dividend

Although MSFT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MICROSOFT to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:10 AM ET):

MICROSOFT (MSFT)
Bid Ask Last Change Volume P/E Market Cap
107.42 107.43 107.43 -1.71 4.9M 51 840B

MSFT Dividend-Like Income Using Covered Calls

With MSFT at 107.43, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 3.22 0.9
5% 5.37 1.5
10% 10.74 2.9

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On MSFT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 111.00 0.04 3 1.3 3.57 (3.3%)
Aug 24 112.00 0.12 10 1.2 4.57 (4.3%)
5% Yield On MSFT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 110.00 0.10 3 3.3 2.57 (2.4%)
Aug 24 111.00 0.21 10 2.1 3.57 (3.3%)
10% Yield On MSFT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 110.00 0.10 3 3.3 2.57 (2.4%)
Aug 24 110.00 0.40 10 4.0 2.57 (2.4%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.UVXY dividend
2.EEM dividend 7.FB dividend   2.LCI dividend
3.QQQ dividend 8.FXI dividend   3.NVDA dividend
4.SPX dividend 9.GLD dividend   4.JWN dividend
5.BAC dividend 10.AABA dividend   5.GDS dividend

Want more examples? MSEX Dividend | MSG Dividend